Radni odnosi u stečaju / Labour Relations in Bankruptcy

Opening of bankruptcy procedure causes numerous consequences that affect the debtor in insolvency and all the persons connected with it. Since employees have the strongest bond with their employer - debtor, special treatment is given to the effect of insolvency on labor contracts. Faith of these contracts in bankruptcy procedure depends upon many factors, but nowadays in majority of countries commencement of bankruptcy does not necessarily mean automatic termination of employment. Since Serbian law has known, during the course of history, both approaches, in this paper we have addressed both of them, and we have pointed out numerous dilemmas that had risen due to imprecise norms. The current Law has accepted more modern concept and sees bankruptcy as a reason for dismissal. However, the Law has not resolved numerous issues that give rise to different interpretations.